Accredited Wealth Management Advisor Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Accredited Wealth Management Advisor Exam with flashcards and multiple-choice questions. Each includes hints and explanations to enhance your understanding. Get ready to excel in your certification exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does Regulation Best Interest NOT require from broker-dealers?

Acting in a retail client's best interest with reasonable diligence and care.
Establishing policies to address conflicts of interest.
Creating a two-page Form CRS in plain English for clients.
Creating new private rights and protections for retail clients.

The correct answer is: Creating new private rights and protections for retail clients.

Regulation Best Interest, implemented by the SEC, focuses on ensuring broker-dealers prioritize their customers’ interests when providing investment advice. The regulation mandates broker-dealers to act in the best interest of their retail clients, meaning they must exhibit reasonable diligence and care in their dealings. It also compels them to establish robust policies to mitigate conflicts of interest that may arise when making recommendations. In terms of documentation and transparency, broker-dealers are required to create a Customer Relationship Summary (Form CRS), which is a concise and clear document that outlines their services, fees, and potential conflicts of interest in straightforward language. However, the regulation does not create new private rights or legal protections for retail clients. It does not give clients the ability to sue broker-dealers or impose new legal obligations beyond those already established under existing laws. Therefore, the aspect of creating new private rights and protections for retail clients is not a requirement of Regulation Best Interest.